WPP To Spend Almost £300m To Reboot World's Biggest Ad Group
WPP will spend £300 million (€332 million) over three years and cut 2,500 jobs as new boss Mark Read seeks to return the world's biggest advertising group to growth.
The British company, owner of the JWT and Ogilvy agencies, lost its founder Martin Sorrell and 40% of its value in the last year. It has been forced to cut sales and profit forecasts after it lost some major clients and others cut their spending.
On Tuesday it set out its plan to respond, with a strategy to maintain its dividend and remove costs of £275 million a year by 2021 by closing offices and removing job roles that overlap across its multiple agencies.
"We need a simpler WPP, we need to invest in the future and this is the next stage in that journey," Read told Reuters.
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